Whalesbook
Office Market Expansion Strains Infrastructure
India's commercial real estate market is experiencing unprecedented expansion, with record-breaking office leasing volumes. This growth is largely driven by Global Capability Centres (GCCs) accelerating their adoption of artificial intelligence. However, this boom highlights a stark disparity: as occupier demand for advanced, AI-enabled operations escalates, the resilience and capabilities of existing building infrastructure are lagging significantly. This digital infrastructure deficit, coupled with mounting cybersecurity threats targeting increasingly connected smart buildings, is becoming a primary concern for landlords and tenants, directly impacting business continuity and long-term asset competitiveness.
Digital Connectivity Lags Behind Demand
India's office market has solidified its position as a global hub, with annual leasing hitting approximately 83.3 million square feet in 2025, according to JLL. Global firms, especially GCCs, account for 58-59% of this leasing activity, increasingly housing mission-critical, data-intensive functions. These advanced operations require unwavering connectivity, high bandwidth, and low latency—qualities that many current buildings struggle to provide reliably. WiredScore research indicates common issues such as inconsistent in-building mobile coverage and limited network redundancy, turning building infrastructure into a potential point of failure. The recent acquisition of WiredScore by Meter, a US internet infrastructure provider backed by venture capital including from Sam Altman, signals a strategic move to address the need for robust digital foundations. Meter aims to scale its enterprise-grade network solutions by leveraging WiredScore's extensive real estate network and its certification standards, positioning digital infrastructure as a core utility.
AI Drives Infrastructure Demands and Cyber Exposure
As AI integration deepens across industries, its demands on building infrastructure intensify. AI tools operate continuously, pull live data, and require constant cloud connectivity, making sustained, high-capacity, and reliable digital infrastructure essential. Basic Wi-Fi is becoming insufficient, as occupiers expect seamless connectivity everywhere to effectively deploy AI initiatives and support hybrid, data-intensive workflows. This escalating digital dependency directly links building infrastructure resilience to business continuity. Simultaneously, the proliferation of smart building technologies—from HVAC and lighting controls to access management and Building Management Systems (BMS)—creates numerous entry points for cyber attackers. Globally, cybercrime is projected to cost $23 trillion by 2027. In India, a significant concern is that approximately 75% of organizations operate BMS with known vulnerabilities, and over half have systems insecurely connected to the internet. Cyber threats targeting these systems can disrupt operations, compromise sensitive data, and potentially endanger physical safety, making cyber resilience a critical factor in asset competitiveness.
Occupier Priorities Shift as Infrastructure Demands Grow
Occupiers are recalibrating their expectations beyond amenities and sustainability, favoring buildings with proven digital resilience and a superior tenant experience. This trend is amplified by flexible workspace operators, who now account for over a fifth of leasing activity and prioritize reliable, secure connected building systems. Landlords failing to adapt risk cyber breaches, operational disruptions, tenant loss, and long-term asset devaluation. Properties with older systems or poor digital infrastructure will struggle to attract and keep premium tenants. Furthermore, the national rollout of TRAI's framework for rating digital connectivity in properties highlights a regulatory push for enhanced infrastructure quality, setting a new benchmark that less advanced properties may not meet.
Future Projections
Analysts project continued robustness in India's office market, with total stock expected to surpass 1 billion square feet by 2026, driven by integrated technology parks and GCC expansion. Demand for 2026 is forecast at 70-75 million sq ft, with new supply around 60-65 million sq ft. Leasing within green-certified and tech-integrated buildings is predicted to capture nearly 80% of the market share. GCCs are anticipated to drive significant leasing, underscoring the sustained need for advanced digital infrastructure to support their evolving, AI-native functions. Investment in AI-driven predictive maintenance is also identified as a key priority for facilities management in 2026, further embedding technology into operational strategies.